Swathi Kamath is General Counsel – Asia at GKN Automotive and was recently recognised in the ‘LawWiser General Counsels – Hall of Fame’ (Mumbai Chapter)

Previously viewed as a department solely focused on expenses, legal teams have undergone a significant shift. What are the key factors that have propelled legal teams from a cost centre to a strategic partner within organisations?

In house lawyers are now seen as active value creators and not just problem preventers. We negotiate better deals, protect the organisation’s intellectual property, provide better strategies to achieve desired business outcomes, deal with complexity whilst upholding governance and ethics standards. In house counsels do not limit themselves to their legal field, but also gain better understanding of the intricacies of the business they operate in. Legal department’s contribution today can be measured in quantitative terms. Eg: Brand protection activities lead to an increase in sales, negotiating better commercials saves the company $$$, adopting the right strategy for disputes can save the company millions of $$$, being transparent with regulators especially where the law is not black and white can prevent huge losses, etc. Lawyers are able to intuitively visualize risks better than their optimistic business counterparts, thereby enabling the business to be better prepared for unexpected outcomes. All these qualities make a GC invaluable at the leadership table.

Can you share a specific instance where your legal expertise significantly influenced a crucial business decision, and what was the outcome of that decision for the company?

We were faced with a high risk of litigation wherein the customer was threatening to sue us. I proposed a settlement solution which was a win-win for all parties to the conflict, which resulted in a very economical settlement, no litigation or reputation risk to the company and also satisfied the customer’s core issues while being within the letter and spirit of law.

Throughout your career, you have undoubtedly interacted with numerous influential individuals. Can you highlight a particularly memorable or impactful interaction that has shaped your approach to your role as a general counsel?

I have been extremely fortunate to have worked with some of the best minds in the industry. One of my previous managers who mentored me and taught me a lot, taught me the greatest lesson of my life – how to deal with difficult people at work without losing your authenticity! Apart from that, many colleagues have imparted precious wisdom along the way. I have learnt some critical investment lessons from a colleague, learnt to read financial statements of a company, learnt the importance of proactive and clear communication, learnt to propose a win-win solution in any negotiation etc. A sum of all these experiences makes me what I am today.

With the increasing complexity of regulations and compliance requirements, how do you ensure that your legal team stays ahead of the curve and effectively manages the legal risks for your organisation?

In today’s digital world, everything is available at our fingertips. We can leverage legal technology tools to monitor compliances, engage with industry associations, build strong communication lines with regulators to understand upcoming laws better, conduct regular trainings for employees and get updates from law firms.  Conducting regular internal audit and doing a risk assessment exercise annually helps the management know all the risks faced by some of the departments which would otherwise may not be known to all.